Who would want to be Alistair Darling today? Facing a borrowing deficit of up to £200bn and an economy in dire recession, I bet he is wishing that the government had put something away for the rainy days we find ourselves in.
Six months ago, Darling predicted in his pre-Budget report that government borrowing would rise to the then jaw-dropping figure of £118bn this year and that the UK would experience a brief and shallow recession, with GDP predicted to fall by 0.75 and 1.25% in the first two quarters of 2009 before a return to growth.
That’s it. Some help for businesses investing in capital equipment and, hopefully effective, measures to boost credit insurance, but not too much else for the industry at first glance – much of the business investment seems to be directed towards high-tech companies. Check back later for news on what the Budget means for the packaging industry.
13:19 Telecommunications, advanced manufacturing and low-carbon sectors seem to have been the main beneficiaries of the Chancellor’s budget so far.
13:19 Increase in statutory redundancy pay to £380 a week.
13:18 April next year, child tax credit increase by £20; £100 a year extra for disabled children’s Child Trust Fund.
13:17 Measures announced today are the “building blocks of recovery”.
13:15 Carbon emissions to be cut by 34% by 2020.
13:13 Strategic Investment Fund announced: £750m mostly to high-tech businesses.
13:10 Extra funding for broadband investment.
13:10 Capital Allowance doubled to 40% for 2009/10 to encourage business investment.
13:08 Bringing forward measures to drill oil from the North Sea.
13:06 £500m of financial support to build houses, £100m for local authorities to build energy-efficient housing.
13:05 Reform to banking system to increase transparency and reduce risk taking.
13:04 £1bn investment to fight climate change.
13:02 Set a goal of £16bn of property and asset sales for capital investment in public sector.
13:00 Alcohol and tobacco duty up by 2% from today. Revenue of £6bn to be raised.
12:58 50% tax rate for highest earners announced, on those earning above £150k.
12:57 Going to stop people avoiding tax; taking measures to ensure that tax is paid by the rich.
12:56 National debt to be 79% of GDP by 2012/13. So much for the Golden Rules!
12:55 Borrowing to be £175bn this year and £173bn next year, less than predicted.
12:55 Estimates that the cost of the bank bailout scheme will be 3.5% of GDP.
12:54 “Around the world, government debt is rising sharply”. Excuses, excuses…
12:53 On to public finances…this is going to hurt.
12:52 Scrappage scheme confirmed, that was “leaked” over the weekend.
12:51 Trade credit insurance scheme to help businesses who face reduction in cover to be launched.
12:50 On to business now. Ability to defer tax delayed, loss-making companies can continue to reclaim tax up to £4,000.
Extending the help which allows loss-making companies to reclaim tax on past profitable years. This will be available until November 2010 – over 100,000 businesses will have their losses wiped out.
12:50 Stamp Duty Relief on sub-£175k properties extended.
12:49 Taking action to boost mortgage lending.
12:48 “Want to do more to reduce the number of reposessions.”
12:47 £260m of new money going to training. From January, everybody under 25 who has been out of work for 12 months will be offered a job or a place in training.
12:46 On to employment now. Job Centre Plus hailed as a success and £1.7bn funding put towards support for the umemployed.
12:45 Current borrowing deficit to halve over four years – no indication of what it is yet though…
12:44 Retail Price Index to fall to -3%.
12:43 1.25% growth in 2010. Growth will come from green industries and scientific base, move away from financial services hinted at. Growth a 3.5% in 2011 – laughter all round.
12:42 “British economy is flexible and diverse, confident in recovery.”
12:42 1.6% contraction in Q4 2008, same prediction for this Q1 2009. 3.5% contraction over the year. Ouch! Lots of heckles from the Tories.
12:41 “No country is immune”. A lot of focus on how the whole world is in the same boat, so far.
12:40 Economic measures to protect half a million jobs.
12:38 VAT cut to remain in place until December.
12:37 “Getting credit flowing essential”, “banks will lend more”. £20bn fiscal stimulus is helping, he says.
12:36 Exports in the UK down 14%, not as bad as Germany and Japan though, Darling claims.
12:35 Economy to grow towards the end of this year; double in size over the next 20 years.
12:33 “We will not repeat the mistakes of the 1930s.”
12:31 Budget will “build on the strength of the economy”.
12:30 Darling takes to the stand, first mention of “global recession” immediate.
12:25 More rowdy than usual in the Commons, they are smelling blood.
12:18 PM sidesteps a question about the predicted level of public borrowing.
12:15 The PM is facing questions ahead of the Budget which kicks off in around 15 minutes.
It's not too late to play easyFairs Fantasy Football, powered by Packaging News.
Loading ...
Comments are closed.